Contents

• Across the City market

• Across the West End market

Across the City market

Take-up in October reached 532,583 sq ft, bringing the total for the first ten months of the year to 4.9m, up 8% on last year but down 1% on the long-term average. October was driven by two 100,000 sq ft+ transactions – this year has seen five transactions above 100,000 sq ft, up 56% on the five-year average.

The largest of this month’s transactions was financial services firm Moody’s pre-let of 10 Gresham Street, EC2, which is currently undergoing a comprehensive refurbishment set to complete early next year. The other major transaction was Allen & Overy Shearman triggering its option space at 1 Broadgate, EC2, a new development set to complete in the third quarter of next year, which they first pre-let in the final quarter of 2021. This demand for acquiring best-in-class in new developments means that 42% of the 2025 development pipeline is now pre-let, leaving potential for the remaining space to achieve increasingly high rents as supply for the best new developments and comprehensive refurbishments dwindles. This is particularly apparent in the city core market, where over half (56%) of the space set to complete in 2025 is already pre-let.

There are also signs of improving occupier sentiment during the month, with under-offers at just under 3m sq ft, their highest level this year and up 24% on the previous month.

City Highlights

Across the West End market

305,775 sq ft completed across 24 transactions in October, bringing the total for the year so far to 2.8m sq ft, up 14% on the same period last year, albeit still down 19% relative to the ten-year average. Take-up has been boosted by an increase in the number of larger deals that have signed in the last few months, with the number of 25,000 sq ft+ deals now in line with the five-year average. Robust levels of leasing activity have also led to a further 20 bps reduction in the vacancy rate to 7.2%, the same as where it stood this time last year.

The largest transaction to take place was VCCP’s lease of the 1st to 4th floors at 66 Berners Street, W1, for a rent believed to be in the £70s per sq ft overall. This month also saw another significant leasing deal in Victoria, with Hartree Partners acquiring the 8th floor at Sky Hub, 123 Buckingham Palace Road, SW1, for £96.00 per sq ft. A flurry of activity has taken place in this submarket since the summer, with take-up at the end of October at the highest levels we have recorded since 2018, and up 15% on the ten-year average.

Furthermore, of the 20,000+ sq ft deals that have completed so far this year, just under a quarter have taken place in Victoria.

West End Highlights

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